DOING YOUR OWN TAXES IS NOT EASY.
The IRS replaced Schedule D-1 with Form 8949 and introduced new requirements for brokerage 1099-B reporting. Therefore, trader taxes have become much more complex than they were just a few years back.

YOUR BROKERAGE 1099-B MAY NOT BE ADEQUATE FOR TAX REPORTING.
1099-Bs are not consistent across brokers, and many contain serious errors. In addition, wash sale rules are different for taxpayers than for brokers.

For example, any of the following situations could change your taxpayer wash sale calculations:

  • You have more than one trading account, even at the same brokerage.
  • You trade options on stocks or ETFs.
  • You elected Section 475(f) mark-to-market method of accounting.
  • You traded in an IRA.

In such cases your brokerage 1099-B gross sales and cost basis amounts will not match with what you are required to report on Schedule D Form 8949.

SEVERE CONSEQUENCES WHEN TRADING IN AN IRA
If you sell a stock or an option at a loss in your taxable account and then repurchase it in your IRA, the loss is permanently disallowed according to the IRS wash sale rules for IRAs.

Don't take our word for it, please read what Barron's Magazine® had to say about the latest IRS changes.